States Confront Rise in Catalytic Converter Thefts Amid Spike in Value of Precious Metals
In January of 2019, rhodium, one of the precious metals used to make catalytic converters, was selling at $2,300 an ounce. Today it goes for $13,250 an ounce.
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In 2021, at least 11 states have enacted laws addressing catalytic converter thefts or sales as the number of thefts have skyrocketed during the pandemic, driven by high unemployment, more cars sitting in driveways and a spike in the value of the metals used to make the devices, platinum, palladium and rhodium, reports Pew Stateline. State legislators have responded with measures to thwart the thieves and prevent the sale of stolen devices.
The measures include banning the sale of converters without proof of ownership, tightening scrap metal dealers’ recordkeeping requirements and beefing up criminal penalties. At least 10 other states have legislation pending. Converter thefts have risen dramatically. In 2019, there were 3,389 claims filed, according to a report by the national insurance crime group. In 2020, that number jumped 326 percent to 14,443. A July report by State Farm found that its converter theft claims rose nearly 293 percent nationwide from mid-2020 to mid-2021 compared with the previous year. The company paid out about $34 million to customers, compared with about $9 million the year before. Prime targets have been SUVs and fleet vehicles, such as trucks and buses, which are easier to slide underneath, and Toyota Prius hybrids, which have two catalytic converters. Criminals typically sell them for $50 to $500 to scrapyards or internet buyers, according to law enforcement and insurance fraud officials.
